Debt

Debt financing

Court prevents SpiceJet ac from being marked as NPA

Business Line  

Gurugram-based airline SpiceJet has got a temporary injunction from the Gurugram District Court against being declared a Non-Performing Asset (NPA) by City Union Bank (CUB). Last month, CUB had recalled the INR 100-crore loan given to SpiceJet. It has marked the carrier as a Special Mention Accounts (SMA) 1 because it has seen incipient stress. SpiceJet was classified as SMA-1 for an overdraft it had taken in 2014-15. SpiceJet is reported to have defaulted on payments to multiple government bodies including Income Tax, GST, and Employee Provident Fund.